Daniel Hussey Jr., Senior Market Strategist for Zaner Ag Hedge, said Illinois property taxes can be up to five times higher than many states due to mismanaged budgets that favor administrative bloat and unsustainable pension costs over efficient public services.
“The issue is not that we don’t want or don’t expect a cost / tax for these things… it’s that, and particularly for Illinois, we no longer believe the states budget reflects those true costs,” said Hussey Jr.. “The administrative costs for schools (pure bureaucratic bloat), unions pillaging road funding, pensions underfunded…. the list goes on. The issue is that we gave the government an inch of property tax, and here they are now taking a mile. I see other states at .25-.4%, and Illinois at 2%… AND we have income tax too… It’s just too much for what we get.”
According to Hussey’s post on X, the real issue in Illinois is budget mismanagement and excessive taxation without corresponding benefits. He pointed out specific grievances such as bureaucratic expansion and high comparative rates, emphasizing taxpayer frustration with the value received from these high levies.
Illinois has the second-highest effective property tax rate in the nation at 2.07 percent for owner-occupied homes, significantly affecting residents of Chicago and its suburbs. This elevated rate is largely due to school funding, which constitutes 63 percent of property taxes and is driven by administrative growth that outpaces inflation. The Illinois Policy Institute reports that these taxes have grown 2.5 times faster than inflation since 1963, worsening inequality in areas like Cook County.
In Cook County, nearly 240,000 homeowners have experienced property tax increases of 25 percent or more recently, adding approximately $500 million in collective payments. These increases are fueled by a complex system of nearly 7,000 taxing districts and a heavy reliance on property taxes for underfunded pensions and expansive social programs. This structure neglects conservative calls for fiscal restraint, leading to spending that burdens middle-class families. Regional data from the Cook County Assessor indicates typical spikes of $1,700 per homeowner.
Nationally, Illinois ranks among the top states for out-migration, losing 83,000 residents in 2024 as many relocate to lower-tax states like Florida and Indiana. High property and income taxes drive this exodus, resulting in a net loss of $9.9 billion in adjusted gross income as higher-earners depart. U.S. Census data confirms this pattern where tax burdens correlate with population shifts away from high-cost areas.
Hussey works as a Senior Market Strategist at Zaner Ag Hedge, focusing on market analysis in the agricultural sector and assisting enterprises and individuals in managing commodity risk exposure through futures and options trading.
